Young entrepreneur: Know thyself

Recent college grads may start their own businesses in response to the tight job market. But, it takes more than a good idea to build a successful enterprise.

Even though employers plan to hire more college graduates this year than in 2011, according to National Association of Colleges and Employers, it’s still a tight hiring market for recent graduates. That’s a key driver behind the increasing interest in starting a business among recent grads.

Some college graduates are starting their own businesses instead of waiting for the job market to improve. Entrepreneurial activities can help you focus on a direction and force you to construct an action plan. Using your entrepreneurial skills in a tight job market can pay off, but don’t overlook a key success factor: Your personality.

Are you cut out to run your own business?

You want to be sure your personality doesn’t stand in the way of your progress, because many times it’s not the product or service that causes a business fails, it’s the personality running the enterprise. Let’s look at three personality types that can cause a business to fail.

Perfectionism: Most entrepreneurs tend to work all the time and can develop the attitude that long hours and doing it right will generate success. The challenge is to curtail the need for perfection that can cause a business to stall. Here’s what can happen: A young entrepreneur with a great business plan and product kept reworking his marketing material while missing business opportunities, because he wasn’t satisfied with how his company information was presented.

Arrogance: Graduating with high honors and being gifted in one area is something you should pay attention to, but just having a great idea does not guarantee people will buy into your business. While you may be an expert with technology, for example, you will need other business elements as well, such as sales. It takes support and an open mind to grow a business. Being arrogant will keep you in a job-search loop.

Impulsiveness: The desire to start a business can blind you to market conditions. If being impulsive caused you problems in the past, receiving financial support for your start-up might lead to bad business decisions, such as the best time to launch. Should you start out slow and generate more business or take the plunge and invest all of your finances? It helps to weigh potential pitfalls with a trusted friend first.

Self-awareness is half the battle when starting a new endeavor, and if you find yourself struggling to start a business, your personality might be getting in the way of your success. Reach out to those who can strengthen your weak spots and give you support. A mentoring group is a great way to get an objective point of view as you build a successful business.